Support for construction industry to meet rising costs
Measures announced to help manage risk in government contracts created by COVID-related price volatility
The Department for Finance has announced steps being taken to help government contractors with the rising costs of raw materials.
COVID-19 has impacted on the availability of construction materials with global demand, product shortages and delivery delays leading to market volatility and increased prices.
The proposals make provision to manage delays in supplies, including mechanisms in existing and new contracts to make allowances for inflationary prices.
It is intended to support to the construction industry to play a key role in economic recovery, while also ensuring government projects such as schools, hospitals and infrastructure projects are delivered.
The Advisory Note will be reviewed at the end of September 2021.
First published 6 August 2021